Work progresses on nine hospital projects
Construction works are seriously going on on nine hospital projects in the country commissioned by the government.
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The projects, which are at various levels of development and completion, include regional and district hospitals. Both the regional and district hospitals have been designed with the patient in mind. They are disability-friendly and include all the necessary facilities of modern day hospitals such as wards and accommodation for hospital staff.
The hospitals are a 500-bed hospital at Afariland in Kumasi in the Ashanti Region for the Ministry of Defence; a 250-bed regional hospital in Kumasi; a 160-bed regional hospital in Wa in the Upper West Region; and the 100-bed Madina/Adenta District Hospital in the Greater Accra Region.
The rest are 60-bed district hospitals at Tepa, Nsawkaw, Salaga, Konongo-Odumasi and Twifo Praso.
Work at all the sites and locations has commenced and moving at very impressive pace but at different rates of progress.
Work on the 500-bed Afariland Kumasi project, and that on the Wa, Tepa and Nsawkaw hospitals started during the second half of 2014 and is expected to be completed by October 2016. That of Madina/Adenta, the 250-bed Kumasi project, the 60-bed Salaga, Twifo-Praso and Konongo projects started during the second half of this year and is estimated to be completed by October 2017.
The strategic objective of the entire project emphasises the creation, expansion and upgrading of facilities in the health system to fill capacity and the service gaps, as well as improve clinical and organisational performances to promote, protect and improve healthcare delivery in the country. The government of Ghana entered into two supplier’s credit agreements with EDI to finance a turnkey project on November 20, 2008.
The projects have two structures comprising a commercial contract (EPC) and a credit agreement supported by promissory notes as guarantee for financing.
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The EPC contract is between Euroget De-Invest SA (EDI) of Egypt and the buyers are the Ministry of Health (MoH) and the Ministry of Defence (MoD). It involves the design, construction, installation and maintenance of nine hospitals.
Components of EPC contract
The components of the EPC contract involves three phases, with phase one covering the design, engineering, drawing and specifications, which are 100 per cent complete.
The second phase is in two parts, with the first part covering the site preparation, including clearing and cleaning and fencing, which have already been done with part two still ongoing at all sites.
Phase three comprises supply and installation of medical equipment, training and two years of maintenance. EDI has concluded the procurement for the medical equipment, medical gas, furniture, kitchen and laundry for all the nine hospitals.
Project financing and regulatory procedures
EDI is providing a concessional suppliers’ credit facility for the execution of the hospital projects.
The credit is secured with promissory notes from the Ministry of Finance (MoF) and the entire funding for the project is secured and lodged in an escrow account with the fund arrangers.
The funds have been fully allocated (55 per cent disbursed and 45 per cent committed).
The 45 per cent commitment has been made in the form of signed contracts with subcontractors and funds dedicated and escrowed with their bank in SA.
Disbursement of the funds is made through letters of credit (LC) arrangement.
The project was conceived by the MoH and MoD and both ministries have duly obtained clearances from the Ministry of Finance for concessional financing, while the necessary Cabinet and parliamentary approvals have been obtained.
Visit to project sites
A Daily Graphic team visiting the project sites in saw that work was progressing at impressive rates. The team was conducted round the project in Kumasi by the Resident Manager of Euroget Group-Ghana, Mr Islam Sharawy, where workers were seen busily discharging their construction tasks.
In Wa, work had progressed to an appreciable level, just as in the Brong Ahafo Region. At the Madina/Adenta project site work was at the early stages.
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Work is also progressing steadily at Tepa, in the Brong Ahafo Region.
Officials of Euroget in Accra, who conducted the Daily Graphic team round the project, expressed optimism that the project would be completed on schedule.
Inauguration
Officials of the project told the Daily Graphic team that inauguration of the hospitals was expected to be sequenced between October 2016 and February 2017.